formation- ICLR Flashcards
what is intention to create legal relations
each party to a contract must intend the agreement to be
legally binding and therefore enforceable in court
is ICLR determined objectively or subjectively
objectively
presumption in social or domestic agreements
not intended to form a contract
case where there was no ICLR in social/domestic agreements
Balfour v Balfour
Balfour v Balfour facts
- promised to pay allowance but failed
- domestic arrangement as it was made at an amicable point in their relationship so no ICLR
case where there was ICLR in social/domestic agreements
Merritt v Merritt
Merritt v Merritt facts
agreement to send her money held to create legally binding obligations as they were separated and about to get divorced
what must the court examine in social/domestic agreements
the real purpose of the arrangement as they can appear similar to business arrangements
case for examining real purpose of social arrangements
Snelling v Snelling
Snelling v Snelling facts
- 3 brothers directors of family business
- made agreement that is they resigned they would forfeit their loaned money
- one brother tried to recover the money he loaned
- agreement was intended to be legally binding given the context- 3 brothers directors of family business
- made agreement that is they resigned they would forfeit their loaned money
- one brother tried to recover the money he loaned
- agreement was intended to be legally binding given the context
case examining real purpose of arrangement that was a mere domestic agreement
Jones v Padavatton
Jones v Padavatton facts
- mother persuaded daughter to move from US to UK
- fell out and mother tried to evict daughter
- at time arrangement was made they were very close so neither party intended to enter legally binding contract
- mere domestic agreement
what happens if money has exchanged hands or 3rd party involved
could provide evidence to rebut presumption of no iCLR
case for 3rd party
Simpkins v Pays
Simpkins v Pays facts
- agreement between family members and lodger over shared winnings from competition was legally binding
- inclusion of a non-family member meant they intended to create legal relations
what is parties put their financial security at risk
likely they intended this to be legally binding
case for financial security at risk
Parker v Clark
Parker v Clark facts
- couple persuaded to sell their house and move in with
- couples fell out, asked to leave
- legally binding agreement as selling their house and share costs indicated it was intended to be legally binding
presumption in business or commercial agreements
intended to be a contract
is there ICLR where free gifts are offered to promote business
yes ICLR is found where free gifts or prizes offered to promote business
case for prizes to promote business
McGowan v Radio Buxton
McGowan v Radio Buxton facts
- entered and won a radio competition to win a car
- was sent a toy car
- court decided there was an enforceable contract as there was no hint that it would be a toy
how can presumption of ICLR be overturned
with clear evidence that there was never any intention to create legal relations
case for overturning ICLR w clear evidence
Jones v Vernon Pools
